38-year-old tax program inserted back into N.C. House budget

Published: Monday, June 16, 2014 at 05:45 PM.

Barring a change of heart, the state’s historic preservation tax credit program will survive for at least another year.

The program was inserted back into the N.C. House budget last week after it was initially omitted, which would have ended a 38-year run.

The House is now debating other amendments and will come together with the N.C. Senate after the representatives agree on a bill. Then, both chambers will vote on the budget and send it to Gov. Pat McCrory for approval.

State Rep. John Bell, R-Wayne, said he is optimistic about the bill having staying power.

“The tax credit passed overwhelmingly in Appropriations, so I don’t see anyone trying to pull it out,” he said.

The tax credit program, scheduled to end Jan. 1, encourages restoring historic commercial buildings by offering a 20 percent state credit on top of the 20 percent federal credit. It also provides tax credits for renovation of historic residences and is considered a key tool in revitalizing distressed historic neighborhoods.

According to the N.C. Department of Commerce, the historic preservation tax credit contributes $124.5 million annually to the state gross domestic product and approximately 2,190 jobs.

Barring a change of heart, the state’s historic preservation tax credit program will survive for at least another year.

The program was inserted back into the N.C. House budget last week after it was initially omitted, which would have ended a 38-year run.

The House is now debating other amendments and will come together with the N.C. Senate after the representatives agree on a bill. Then, both chambers will vote on the budget and send it to Gov. Pat McCrory for approval.

State Rep. John Bell, R-Wayne, said he is optimistic about the bill having staying power.

“The tax credit passed overwhelmingly in Appropriations, so I don’t see anyone trying to pull it out,” he said.

The tax credit program, scheduled to end Jan. 1, encourages restoring historic commercial buildings by offering a 20 percent state credit on top of the 20 percent federal credit. It also provides tax credits for renovation of historic residences and is considered a key tool in revitalizing distressed historic neighborhoods.

According to the N.C. Department of Commerce, the historic preservation tax credit contributes $124.5 million annually to the state gross domestic product and approximately 2,190 jobs.

North Carolina ranked third nationally in the use of historic preservation tax credits in 2011, according to information provided by the city of Wilmington.